Google & Microsoft Inc Comparison Essay

294 WordsMar 20, 20122 Pages
2010 RATIO FORMULA VARIABLES GOOGLE INC. (GOOG) MICROSOFT CORP. (MSFT) LIQUIDITY MEASUREMENT RATIO: Current Ratio Current Assets/Current Liabilities Current Assets 41,562,000.00 4.157863145 55,676,000.00 2.129345623 Current Liabilities 9,996,000.00 26,147,000.00 PROFITABILITY INDICATOR RATIOS Return on Assets Net Income/Total Assets Net Income 8,505,000.00 0.147015609 18,760,000.00 0.217853286 Total Assets 57,851,000.00 86,113,000.00 Return on Equity Net Income/Shareholder's Equity Net Income 8,505,000.00 0.183927683 18,760,000.00 0.406280455 Shareholder's Equity 46,241,000.00 46,175,000.00 DEBT RATIO: Debt Ratio Total Debt/Total Assets Total Debt 11,610,000.00 0.200687974 39,938,000.00 0.463785956 Total Assets 57,851,000.00 86,113,000.00 OPERATING PERFORMANCE RATIO: Fixed Asset Turnover Ratio Net Sales/Net Property, Plant & Equipment Net Sales 29,321,000.00 3.778966362 62,484,000.00 8.189252949 Net Property, Plant & Equipment 7,759,000.00 7,630,000.00 CASH FLOW INDICATOR RATIO: Dividend Payout Ratio Dividends/Net Income Dividends 0.00 0 4,578,000.00 0.244029851 Net Income 8,505,000.00 18,760,000.00 INVESTMENT VALUATION RATIO: Price-Earnings Ratio Stock Price Per Share/EPS Stock Price Per Share 593.97 20.24437628 25.64 9.323636364 Earnings Per Share (EPS) 29.34 2.75 Google Inc. and Microsoft Inc. Google Inc. Microsoft Inc. COMPARISONS CONTRAST Core Business Computers Internet Computer Software Leading Products and/or Services Computer related Search Engine Computer Hardware Consumer electronics Digital Distribution Video Games IT Consulting Online Advertising

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